Business

August 4, 2021—Mortgage Rates Drop – Forbes Advisor

Read more at www.forbes.com

Editorial Note: Forbes Advisor may earn a commission on sales made from partner links on this page, but that doesn’t affect our editors’ opinions or evaluations.

Mortgage rates didn’t move today. If you’re interested in buying a home or refinancing your current home, you still have a shot at locking in a historically low rate.

The average rate on a 30-year fixed mortgage is 3.01%, according to Bankrate.com. On a 15-year fixed mortgage, the average rate is 2.28%. The average rate on a 30-year jumbo mortgage is 2.97%, and the average rate on a 5/1 ARM is 2.80%.

30-year Fixed-rate Mortgages

The average rate for the benchmark 30-year fixed-rate mortgage remained at 3.01%. Last week, the 30-year fixed was 3.07%. The 52-week high is 3.37%.

The 30-year fixed mortgage APR is 3.23%. At this time last week, it was 3.29%. Here’s why APR is important.

At an interest rate of 3.01%, a 30-year fixed mortgage would cost $422 per month in principal and interest (taxes and fees not included) per $100,000, according to the Forbes Advisor mortgage calculator. The total interest paid over the life of the loan will be about $51,972.

15-year Fixed-rate Mortgages

The average interest rate on the 15-year fixed mortgage is 2.28%. This same time last week, the 15-year fixed-rate mortgage was at 2.34%.

On a 15-year fixed, the APR is 2.63%. Last week it was 2.66%.

With an interest rate of 2.28%, you would pay $656 per month in principal and interest for every $100,000 borrowed. Over the life of the loan, you would pay $18,167 in total interest.

Jumbo Mortgages

The average interest rate on the 30-year fixed-rate jumbo mortgage sits at 2.97%. Last week, the average rate was 3.04%. The 30-year fixed rate on a jumbo mortgage is currently higher than the 52-week low of 2.85%.

Borrowers with a 30-year fixed-rate jumbo mortgage with today’s interest rate of 2.97% will pay $420 per month in principal and interest per $100,000. That means that on a $750,000 loan, the monthly principal and interest payment would be around 3,150, and you’d pay roughly $383,967 in total interest over the life of the loan.

5/1 ARMs

The average interest rate on a 5/1 ARM sits at 2.80%, higher than the 52-week low of 2.83%. Last week, the average rate was 2.78%.

Borrowers with a 5/1 ARM of $100,000 with today’s interest rate of 2.80% will pay $411 per month in principal and interest.

How to Calculate Mortgage Payments

If you can’t or don’t want to pay cash, mortgage lenders and mortgages will be part of your home buying process. It’s important to figure out what you’ll likely pay each month to see if it fits into your budget.

To estimate your monthly mortgage payment, you can use a mortgage calculator. It will provide you with an estimate of your monthly principal and interest payment based on your interest rate, down payment, purchase price and other factors.

Gather these data points to calculate your monthly mortgage payment:

  • The home price
  • Your down payment amount
  • The interest rate
  • The loan term
  • Any taxes, insurance and any HOA fees

Saving Up for a House

You may know you have to save enough for a down payment, but it takes more money than that to get through the homebuying process. Plus, after you buy, you have to furnish your new home and keep up with potential repairs.

Here are six things to prepare for when saving up for a house:

  • Down payment
  • Inspection and appraisal
  • Closing costs
  • Ongoing costs
  • Home furnishings
  • Repairs and renovations

How Do I Get Preapproved for a Mortgage?

Getting preapproved for a mortgage can help you during the homebuying process. Mortgage preapproval represents a lender’s offer to loan you money. It can help you appear more attractive to sellers.

To get preapproved for a mortgage, start by gathering documents. You’ll need your Social Security card, W-2 forms, pay stubs, bank statements, tax returns and any other documents your lender requires.

The lender you select will guide you through the preapproval process.

Read more at www.forbes.com

Show More

Related Articles

Back to top button